Transportation group adopts report


A special transportation committee gave final approval Wednesday to a report that proposes creating a tax on the number of miles a car is driven each year, as well as several other options for generating highway and transit money.

The vehicle miles tax would be calculated during the car's annual inspection and likely would supplement or replace the gas tax. Legislators on the 21st Century Transportation Committee cautioned that a new tax is unlikely to advance during the sort of budget crisis the state faces this year.

The special committee was formed to propose a menu of options for transportation funding, because the state's primary sources of money, the gas tax and a tax on car sales, are flat or declining in revenue because of factors such as more fuel efficient and longer lasting vehicles.

The group also proposed toll booths on I-77 and I-95.

Committee member Chuck McGrady, however, said the committee skirted the question of overhauling how the Department of Transportation operates after years of complaints about turf battles, political patronage and dysfunctional divisions.

"We haven't gone far enough," said McGrady, a Henderson County Commissioner.

Asheville Mayor Terry Bellamy, another committee member, cast the lone 'no' vote on the final version of the recommendations, saying the vehicle miles tax unfairly penalized rural residents with long commutes and no public transportation.

Committee chair Brad Wilson, chief operating officer of Blue Cross Blue Shield of North Carolina, said the road funding report could gather dust on a shelf unless individuals and communities support the recommendations. He acknowledged that raising new taxes is unpopular but said that a failing transportation system will make the state less attractive to new employers.

Criticism of the report after the jump.

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Steve Jackson, an analyst who focuses on transportation issues for the North Carolina Justice Center’s Budget & Tax Center, criticized the report as lacking vision. 

"The report offers no consistent vision for how to move forward," said Jackson. "Given how fundamental our transportation problems are in North Carolina, this is very disappointing. The policy solutions suggested are more 1955 than 2055."

In a news release, Jackson said the report offers a piecemeal approach, supports policies that encourage congestion and doesn't offer a clear way to make changes.

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Re: Transportation group adopts report

Um, doesn't this mean the state is going to lose revenue from all the out of state drivers (and truckers) just passing through. If so, I guess that means all the NC drivers will have to subsidize those folks. That's fair. Me driving my Prius will subsidize a 40 ton truck that does 100 times more damage to the road and environment. (that was sarcasm for anyone who missed it)

Re: Transportation group adopts report

But that is the same way the gas tax works now. The more you drive, the more tax you pay. The key difference if your car gets good mileage you can reduce the tax you pay somewhat.

Missing the point

The whole impetus for the mileage tax is because gas revenue to support road construction and maintenance keeps going down, but the wear and tear on our roads keeps going up -- the result of cars getting better mileage. The obvious thing to do is just raise the tax rate on gasoline and diesel. If average fuel efficiency increases 20%, just raise the tax rate by 20%, and you maintain about the same tax revenue per mile that cars are on the road. It's the simple solution. It is also basically fairer because bigger cars and trucks do more damage to roads per mile traveled and also use more fuel per mile.

Of course, if electric cars become a significant portion of the vehicles in the state, some other solution may be necessary -- but that will be years from now.

Re: Transportation group adopts report

What about those of us who drive significant miles out of State? What is right about North Carolina charging me for hundreds of miles that have absolutely nothing to do with North Carolina roads? Toll roads for actual use is one thing, but toll cars -- well, we call those taxis.

Re: Transportation group adopts report

Let me get this straight. I drive 50 miles one way to work five days a week. My wife drives 12 miles one way to work five days a week. My neighbor walks to work and only drives on weekends and occasionally during the week

By these standards, I am going to get screwed and my neighbor (lucky enough to live close to work) is going to get kissed.

I hope they use a condom when they screw me.

Re: Transportation group adopts report

The first thing that needs to happen before more taxes or tolls, is to BUILD ROADS WHERE WE NEED THEM. It's not that hard, put the good ole boy politics away and get something done. Fayetteville doesn't need a loop, and neither does any city that is smaller than a quarter million, that needs to go. You just saved $275 million. How much money did Easley's cronies piss away by building pet projects (Louis Sewell,and friends)only to resign in disgrace? Prioritize the most pressing needs regardless of where they may be and build those projects first. If you eliminate the horrible "equity" formula and the pay to play loop funding where you get such nonsense as the Tony Rand/Lyndo Tippett Fayetteville loop, you'd be surprised how much money there is. There needs to be a pool of money for each division for smaller projects and the rest should be pooled for the larger projects by need, not where board members live or do business.

Re: Transportation group adopts report

GEEZ!! Instead of the inspection being around $30 it will be hundreds if they do this. And when have you ever known of the government getting rid of a tax??? My parents and I are being penalized for having to drive to work? For me to use public transport in Raleigh would be impossible. From what I have seen of these guys they are like in their 80s and obviously out of ideas. THE DEPARTMENT OF TRANSPORTATION NEEDS AN OVERHAUL!!!!!!!

Re: Transportation group adopts report

Transportation such as light rail systems should have been in the forefront of discussions....and not how to keep adding new taxes to support the DOT,and the dependence on oil.

Re: Transportation group adopts report

I doubt the state gas tax would ever be replaced by this mileage tax. If all that's done is record your miles on the odometer at inspection time, what if you took a long trip out of state? What if you drive mainly in town on city maintained roads? It sounds good in theory, but the reality is a lot more complicated than that.

Not Roads, Light Rail

In the very near future, the roadways in our urban areas are going to become serious bottlenecks. Spending money to lay concrete isn't going to address this problem. Nor does it address our dependence on foreign oil.

Rather than wasting the money on roads, the money ought to be invested in developing light rail systems.

It's about time our Department of Transportation become something other than our "Department of Roads".

Re: Transportation group adopts report

Enough! Are these guys all idiots? Is that what it takes to get elected here in NC or get appointed by your elected buddy? Just be an idiot and you get a job. This is one of the dumbest ideas to ever come out of a state department and there have been some real bad ideas. What do they do? Just sit around and come up with idiotic schemes to aggravate the very people paying their salaries? I just came up with the best idea yet. In order to run for election or be appointed by your buddy that got elected you must pass and IQ test. Your IQ must be no less than 75 and certainly no more than 85. Ya see, if they is too smart they is just as dangerous because they still have bad ideas but the ideas sound good before being unrapped from the educated bull sh*t.

Re: Transportation group adopts report

More bad ideas from the group most responsible for I-540 being built as a toll road. Now that the federal govenment will be supporting massive road building projects across the country to stimulate the economy, we are stuck instead with toll roads that will not qualify for any of that money. It sounds like their new sollution is to make EVERY road in NC a toll road. Yuck! Where are the mass transit or other ideas that will reduce traffic congestion? This group need to be flushed and the state legislature needs to take responsibility for its own decisions and have some ideas of its own.

Re: Transportation group adopts report

I'm a state employee who has to drive for my job. I usually drive my own vehicle so I don't have to deal with the problems associated with getting a state vehicle each week. I probably drive about 18,000 miles per year in my job. Am I now going to be taxed by the state for driving to perform the job the state has hired me to do? What a joke.

Re: Transportation group adopts report

'let it sit on the shelf' Brad Wilson...let it sit...we are TAXED out the rear on EVERYTHING in NC...JUST SAY NO to mileage tax AND TOLL roads!!!
oh yeah and STRIVE to be SMARTER than a corrupt NC democrat!